SEC sues over suspicious Heinz trades before buyout

DUBIOUS TIMING:The US commission took action after a sudden spike in trading prior to the Heinz deal led to large profits for traders using Swiss-based accounts

Bloomberg

Trading volume skyrocketed on Thursday on news of the acquisition, the commission alleged, reaching more than 64 million shares, an increase of more than 1,700 percent.

The increase was the highest level since Jan. 31, according to data compiled by Bloomberg.

“The timing, size and profitability of the defendants’ trades, as well as the lack of prior history of significant trading in Heinz,” made the transactions “highly suspicious,” the commission said in its complaint, which accuses the unnamed defendants of violating the US’ Exchange Act.